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Internal Governance in the Nonprofit Boardroom: a participant observer study

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  • Lee David Parker

Abstract

This paper presents the results of a longitudinal complete member researcher participant observer study of two nonprofit association boards with particular reference to their internal corporate governance processes. In doing so, it offers one of the very few available insider observational studies of boardroom behaviour currently available in the management literature. Its inductive analysis reveals boards that proactively manage director recruitment and selection, board member terms and rotation, with a strong emphasis on board membership diversity and representation. A clear progression from informal to formal processes of board and director performance evaluation are observed, and a variability in board–CEO relationships is explored. Agenda structuring changes are observed to directly impact upon strategy and policy focus, while informality and humour emerge as key weapons in the maintenance of cohesion in an increasingly business‐oriented environment. Boardroom culture emerges as a potent ingredient in the governance process, thereby signalling its future importance for both researchers and board chairs.

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  • Lee David Parker, 2007. "Internal Governance in the Nonprofit Boardroom: a participant observer study," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(5), pages 923-934, September.
    • Handle: RePEc:bla:corgov:v:15:y:2007:i:5:p:923-934
    DOI: 10.1111/j.1467-8683.2007.00607.x
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    1. Stiles, Philip & Taylor, Bernard, 2001. "Boards at Work: How Directors View their Roles and Responsibilities," OUP Catalogue, Oxford University Press, number 9780198288763.
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    2. Andrew Shipilov & Yeonsin Ahn & Henrich Greve & Tim Rowley, 2024. "The impact of governance practices on firm outcomes: a machine-learning exploration," Journal of Organization Design, Springer;Organizational Design Community, vol. 13(2), pages 45-64, June.
    3. Ethel Brundin & Mattias Nordqvist, 2008. "Beyond Facts and Figures: The Role of Emotions in Boardroom Dynamics," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(4), pages 326-341, July.
    4. Bettinelli, Cristina & Del Bosco, Barbara & Gentry, Richard J. & Dibrell, Clay, 2023. "The influence of board social activity on firm performance," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    5. Ryan Federo & Angel Saz-Carranza & Xavier Fernandez-í-Marin & Carlos Losada, 2023. "CEO selection in intergovernmental organizations: the clash between control and efficiency in governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 155-180, March.
    6. Tasawar Nawaz, 2022. "What's in an education? Implications of CEO education for financial inclusion," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3741-3753, July.
    7. Dahlvik Julia & Pohn-Weidinger Axel & Kollegger Martina, 2020. "Independence despite Political Appointment ? The Curious Case of the Austrian Ombudsman Board," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 13(2), pages 181-210, December.

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